ZENKOKU HOSHO Co.,Ltd.

DB:ZKH Stock Report

Market Cap: €2.3b

ZENKOKU HOSHOLtd Valuation

Is ZKH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZKH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZKH (€33.2) is trading below our estimate of fair value (€54.38)

Significantly Below Fair Value: ZKH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZKH?

Key metric: As ZKH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZKH. This is calculated by dividing ZKH's market cap by their current earnings.
What is ZKH's PE Ratio?
PE Ratio12.8x
EarningsJP¥28.63b
Market CapJP¥365.03b

Price to Earnings Ratio vs Peers

How does ZKH's PE Ratio compare to its peers?

The above table shows the PE ratio for ZKH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.2x
GLJ Grenke
9.5x25.2%€705.1m
ALG ALBIS Leasing
13.1x9.9%€58.1m
HYQ Hypoport
43.7x30.4%€1.3b
T2G Tradegate Wertpapierhandelsbank
86.6xn/a€2.2b
ZKH ZENKOKU HOSHOLtd
12.8x6.1%€365.0b

Price-To-Earnings vs Peers: ZKH is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (38.2x).

Price to Earnings Ratio vs Industry

How does ZKH's PE Ratio compare vs other companies in the European Diversified Financial Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZKH 12.8xIndustry Avg. 10.6xNo. of Companies13PE01020304050+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZKH is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the European Diversified Financial industry average (10.8x).

Price to Earnings Ratio vs Fair Ratio

What is ZKH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZKH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: ZKH is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZKH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€33.20
€37.91
+14.2%
6.8%€43.03€36.17n/a5
Nov ’25€33.00
€37.37
+13.2%
7.8%€42.48€33.55n/a5
Oct ’25€34.60
€38.59
+11.5%
10.0%€45.80€34.19n/a5
Sep ’25€36.00
€38.43
+6.7%
9.7%€45.51€34.41n/a5
Aug ’25€35.80
€37.17
+3.8%
9.6%€43.73€33.07n/a5
Jul ’25€33.60
€36.30
+8.0%
10.7%€43.27€32.60n/a5
Jun ’25€32.40
€35.89
+10.8%
10.9%€42.87€32.01n/a5
May ’25€32.20
€37.17
+15.4%
6.6%€40.88€34.27n/a5
Apr ’25€32.20
€37.17
+15.4%
6.6%€40.88€34.27n/a5
Mar ’25€32.40
€37.17
+14.7%
6.6%€40.88€34.27n/a5
Feb ’25€33.60
€35.36
+5.3%
8.5%€40.12€32.71n/a5
Jan ’25€33.00
€35.36
+7.2%
8.5%€40.12€32.71n/a5
Dec ’24€30.00
€35.36
+17.9%
8.5%€40.12€32.71n/a5
Nov ’24€29.40
€36.26
+23.3%
9.1%€41.35€33.08€33.005
Oct ’24€30.20
€36.99
+22.5%
7.9%€41.46€33.16€34.605
Sep ’24€31.20
€36.99
+18.6%
7.9%€41.46€33.16€36.005
Aug ’24€30.80
€38.85
+26.1%
8.1%€43.61€34.55€35.805
Jul ’24€30.80
€38.85
+26.1%
8.1%€43.61€34.55€33.605
Jun ’24€32.60
€38.85
+19.2%
8.1%€43.61€34.55€32.405
May ’24€32.60
€40.47
+24.1%
8.0%€45.21€36.38€32.205
Apr ’24€33.40
€40.47
+21.2%
8.0%€45.21€36.38€32.205
Mar ’24€35.20
€40.47
+15.0%
8.0%€45.21€36.38€32.405
Feb ’24€33.80
€41.50
+22.8%
7.9%€46.19€37.17€33.605
Jan ’24€34.80
€38.72
+11.3%
7.4%€43.55€35.05€33.005
Dec ’23€34.40
€38.72
+12.6%
7.4%€43.55€35.05€30.005
Nov ’23€32.60
€40.37
+23.8%
8.9%€46.05€35.98€29.405

Analyst Forecast: Target price is less than 20% higher than the current share price.

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